Home sales in Iowa City were up slightly in 2011. Today I’m going to break it down into categories. Single family homes in Iowa City did a lot better than condos in 2011 with single family home sales up compared to 2010 by 12% while condo sales were down by 15%.
It’s not surprising that condo sales in Iowa City are down. Iowa City is a relocation destination and a good portion of the condo market is driven by students coming to the University of Iowa and residents moving to Iowa City for their residency at the UI Hospitals. Typically when they buy a home it’s with a view to selling it again in 3 to 4 years. In 2010 they had the first time homebuyer credit as an incentive, without that incentive it’s hardly surprising that in the current economic climate they’re reluctant to take any chances on being stuck with something they can’t sell when they need to move again. With the economy moving upwards we may see a change in that trend in 2012. Especially since renting in Iowa City is certainly not a cheap alternative anymore!
Thinking of buying or selling a home in Iowa City? When you’re ready to make your move please give me a call. I’m always happy to share information and help you figure out your options.
Data for this market report came from the Iowa City MLS January 6, 2012